Pisces’ first birthday was an intimate affair

On the first anniversary of the London Stock Exchange (LSE) obtaining a license for Pisces, a private securities venue providing liquidity to fast-growing firms, the celebrations were relatively subdued. Pisces, since its inception, has attracted only three companies: AI firm Wayve, fintech Moneybox, and an abstract structure above Oxford Science Enterprises.

Collectively, these businesses have conducted four share auctions. Factors contributing to the quiet atmosphere include geopolitical tensions, such as the Iran war, sluggishness in the IPO market, and member firms interpreting the 'intermittent' provision of Pisces disfavorably. The quarterly auction requirement at Pisces has put off some firms, with Wayve and Moneybox conducting only one-off auctions.

Additionally, member firms might have been reluctant to hold frequent auctions, given their experience with GSTrUE, a platform launched by Goldman Sachs in 2007 with the objective of providing liquidity events for firms that do not want to go public. Despite initial successes with Wall Street firms like Oaktree and Apollo, raising over $1 billion, GSTrUE ultimately failed.

No significant liquidity market developed among qualified investors, leading to few buyers when companies sought to sell their shares on the exchange. This lack of liquidity, coupled with the financial crash following the launch, contributed to GSTrUE's demise. Currently, only Apollo and Oaktree remain affiliated with the platform.

To revive Pisces, someone at the LSE must address the current lack of activity and engage more member firms to ensure the platform's success.